HUGO BOSS

The Supervisory Board is responsible for overseeing the Managing Board and consists of twelve members. In fiscal year 2024, the Supervisory Board met five times, with meetings focused on current business performance, risk assessment, strategy execution, capital structure, compliance issues, and Corporate Governance Code requirements.

Committees and their work:

Audit Committee (met 4 times): Addressed financial reporting, risk management and internal control system, IT security matters, compliance matters, CSRD requirements for non-financial reporting, auditor independence, and non-audit services approval.

Personnel Committee (met 4 times): Focused on succession planning, filling management positions, Managing Board compensation system, target achievement assessment, and reappointment of Managing Board members.

Working Committee (met 2 times): Dealt with business performance, strategic alignment, lease extensions, Digital TWIN project progress, sport-sponsoring activities, and strategic partnership with David Beckham.

Nomination Committee (met 4 times): Prepared for upcoming Supervisory Board election scheduled for 2025.

Mediation Committee: Did not convene during fiscal year 2024.

The Supervisory Board conducted an annual efficiency review using external evaluation of questionnaires. No conflicts of interest relating to Managing Board or Supervisory Board members arose in fiscal year 2024.

The Supervisory Board was regularly informed about sustainability matters through various channels:

• The Audit Committee specifically addressed the requirements of the Corporate Sustainability Reporting Directive (CSRD) for non-financial reporting
• Current business performance, liquidity management, and risk assessment were regularly discussed at Supervisory Board meetings
• The combined non-financial statement for 2024 and the independent auditor's limited assurance report were discussed by the full Supervisory Board on March 12, 2025
• The Supervisory Board received comprehensive reports on the contents of committee meetings, including those covering sustainability-related topics
• Regular detailed reports were provided on compliance matters and risk management, which encompass ESG risks
• The Supervisory Board focused on the Company's strategic execution including sustainability elements of the 'CLAIM 5' strategy

HUGO BOSS has integrated sustainability-related performance into its incentive schemes at multiple management levels:

Short-term Incentive (STI): The STI program for managers at all four management levels below the Managing Board is linked to achievement of specific sales and EBIT targets, with trade net working capital as a percentage of sales being the third component.

Long-term Incentive (LTI): The compensation scheme for management at the two levels below the Managing Board includes a long-term incentive program whose design matches that for the Managing Board. The LTI includes both financial targets and non-financial ESG (environmental, social, governance) targets. The ESG component is related to:

• Employee satisfaction
• The Company's relative performance in sustainability

The LTI is intended to ensure that senior management of HUGO BOSS pursues a sustainable business policy that is aligned to the interests of the Company. This structure ensures that sustainability performance directly impacts executive compensation and decision-making.

HUGO BOSS conducts due diligence processes across its value chain, particularly in relation to suppliers and business partners:

Supplier Due Diligence: The Company works with a network of experienced and specialist suppliers, with relationships averaging more than ten years. HUGO BOSS fosters long-term strategic partnerships with its suppliers and sees itself as a strong partner, supporting suppliers in the further development and professionalization of processes and workflows.

Selection Criteria: Alongside economic criteria, HUGO BOSS attaches great importance to environmental and social aspects in the selection of suppliers. The cooperation is based on:

• Respect for human rights
• Compliance with applicable working standards
• Occupational health and safety

Supplier Code of Conduct: The HUGO BOSS Supplier Code of Conduct forms the framework for all supplier relationships, establishing the foundation for due diligence processes.

Supply Chain Transparency: In 2024, the Company successfully rolled out key traceability features to a large majority of supply chain partners worldwide, significantly strengthening transparency across the entire supply chain through the Digital TWIN initiative.

Supplier Network: In fiscal year 2024, HUGO BOSS sourced finished goods from 200 external Tier 1 suppliers operating 271 production facilities, and procured fabrics and trimmings from 382 external Tier 2 suppliers operating 411 production facilities.

Overall Responsibility: The Managing Board of HUGO BOSS has overall responsibility for an effective risk management system, including sustainability-related risks.

Risk Management Structure:

• The central Risk Management and Internal Controls department coordinates the execution and continuous development of the risk management system on behalf of the Managing Board
• Monitoring the effectiveness of the risk management system is the responsibility of the Supervisory Board
• The Audit Committee of the Supervisory Board exercises this task with involvement of the Internal Audit department

ESG Risk Integration: The process for identifying, evaluating and managing ESG risks was integrated into the overarching risk management system and can be used to evaluate the Company's overall risk profile and risk management processes. The results of the ESG risk and opportunity assessment were integrated into the Company's existing risk management system to streamline processes.

Internal Controls: As part of the reporting process, HUGO BOSS has not identified any risks associated with its own business activities, business relationships, products or services that very likely have or could have serious adverse impacts on the five mandatory aspects as set forth in Sec. 289c HGB.

Sustainability Governance:

• Strategic responsibility for ESG matters is assigned to the Group Strategy and Corporate Development division, reporting directly to the CEO
• Operational responsibility lies with Business Operations
• Group Finance & Tax is responsible for Group-wide ESG data collection, consolidation, and validation
• The CFO/COO assumes responsibility for the central Sustainability Committee

Business Model: HUGO BOSS is a leading global fashion and lifestyle company in the premium segment, headquartered in Metzingen, Germany. The Company offers high-quality women's and men's apparel, shoes, and accessories through two globally renowned brands – BOSS and HUGO.

Strategy: The Company pursues the "CLAIM 5" growth strategy, introduced in August 2021, built on five strategic pillars:

1. Boost Brands - Increase relevance and perception through 360-degree brand campaigns, collaborations, and unique brand events
2. Product is Key - Develop 24/7 lifestyle brands with superior price-value proposition, focusing on premium quality, innovation, and sustainability
3. Lead in Digital - Drive digitalization along the entire value chain, with goal of developing >90% of products digitally by 2025
4. Drive Omnichannel - Provide seamless brand experience across >8,000 points of sale globally and 74 digital markets
5. Organize for Growth - Transform organization into platform of speed and growth with streamlined, brand-led setup

Vision: To be the leading premium tech-driven fashion platform worldwide.

Value Chain:

• Upstream: Tier 1-4 suppliers covering assembly, materials production, raw material processing, and extraction/farming
• Own Operations: 5 production sites, logistics, distribution, product design, marketing, retail operations, administration
• Downstream: Distribution via wholesale partners, consumer use phase, end-of-life/recycling

Geographic Presence: Operations in 129 countries across three regions - EMEA (61% of sales), Americas (24%), and Asia/Pacific (13%), plus licensing business (3%).

Sustainability Integration: Sustainability strategy focuses on five pillars: increasing circularity, driving digitization & data analytics, leveraging nature-positive materials, fighting microplastics, and pushing towards zero emissions, with goal of creating "a planet free of waste and pollution."

Stakeholder Engagement Approach: HUGO BOSS actively engages with stakeholders, valuing their input as essential to shaping both Group and sustainability strategies. The Company maintains systematic dialog with all relevant stakeholders including employees, shareholders, customers, business partners, and society.

Stakeholder Analysis: Guided by stakeholder analysis conducted in accordance with the AA 1000 SES standard, HUGO BOSS employs standardized formats and approaches for effective communication including:

• Corporate website
• Annual Report
• Social media channels
• Dedicated stakeholder events

Key Stakeholder Event: In 2024, HUGO BOSS held a Stakeholder Dialog at Group headquarters in Metzingen, bringing together industry experts, academics, NGOs, and supply chain partners for in-depth discussions on sustainability within the fashion industry's supply chain.

Double Materiality Assessment: HUGO BOSS conducted a comprehensive double materiality assessment in 2024, engaging with numerous internal stakeholders through interviews and desk research. External stakeholder perspectives were incorporated through internal experts who regularly engage with relevant interest groups.

Customer Engagement:

• Launched HUGO BOSS XP loyalty program in 2024 - a hyper-personalized omnichannel member experience
• Increased member base by ~25% to more than 10 million members
• Focus on building brand loyalty and customer lifetime value

Investor Relations: Extensive activities including participation in national and international conferences, global roadshow activities, and regular presentations to private shareholders. Won multiple awards including "Investors' Darling Award" and "ESG Transparency Award" for comprehensive sustainability reporting.

Double Materiality Assessment: HUGO BOSS conducted a comprehensive double materiality assessment (DMA) in 2024 in preparation for ESRS compliance. The assessment identified material sustainability impacts, risks, and opportunities through engagement with internal stakeholders via interviews and desk research, while incorporating external stakeholder perspectives.

Impact Materiality (Inside-out): The ESG impact assessment developed a comprehensive catalog of ESG impacts, mapping existing impacts to ESRS methodology. The assessment covered potential and actual impacts on environment and people across the value chain - from own operations to upstream and downstream stages. Using ESRS criteria, negative impacts were classified as material if they fell in the upper half of the combined assessment scale, while positive impacts were material if they fell in the upper quarter.

Financial Materiality (Outside-in): The ESG risk and opportunity assessment was led by Risk Management and Internal Controls, analyzing risks and opportunities in accordance with ESRS criteria. All risks with combined likelihood and magnitude rated as either high or critical were assessed as material. The assessment was conducted on a gross basis, excluding implemented mitigation measures.

Material Topics Identified: The DMA indicated that nine of the ten ESRS topics are generally considered material for HUGO BOSS in fiscal year 2024.

Integration with Strategy: Material impacts, risks and opportunities are closely integrated with the "CLAIM 5" strategy, particularly through:

• Sustainability strategy focusing on five pillars (circularity, digitization, nature-positive materials, fighting microplastics, zero emissions)
• ESG targets integrated into executive compensation (LTI programs)
• Risk management system integration of ESG factors
• Strategic initiatives addressing material topics across environment, social, and governance aspects

Business Model Interaction: Material sustainability matters directly influence business model execution through operational changes, product development innovations, supply chain management, and stakeholder engagement strategies.

Double Materiality Assessment Process: In 2024, HUGO BOSS conducted a comprehensive double materiality assessment (DMA) in preparation for compliance with ESRS standards. The process was designed to identify material sustainability impacts, risks, and opportunities.

Impact Assessment Methodology:

• Led by Investor Relations in collaboration with Corporate Sustainability and Risk Management departments
• Started with comprehensive catalog of ESG impacts, leveraging previous GRI-based materiality analysis
• Expanded catalog through desk research using frameworks like SASB standards for textile and apparel industry
• Covered potential and actual impacts on environment and people across entire value chain
• Used systematic approach with ESRS criteria for clarity and consistency
• Conducted on gross basis, excluding influence of mitigation measures
• Applied uniform thresholds: negative impacts material if in upper half of assessment scale, positive impacts if in upper quarter

Risk and Opportunity Assessment:

• Led by Risk Management and Internal Controls department
• Conducted structured interviews with internal risk and opportunity experts
• Applied ESRS methodology with clear framework and guidelines
• Analyzed likelihood of risks and potential business consequences
• Assessed financial materiality on qualitative basis
• Used likelihood and magnitude thresholds aligned with general risk assessment methodology
• Material risks classified as those with combined likelihood and magnitude rated high or critical

Stakeholder Engagement:

• Engaged numerous internal stakeholders through interviews and desk research
• Incorporated external stakeholder perspectives through internal experts who regularly engage with interest groups
• External ESG consultants monitored and reviewed the DMA process
• Oversight by CFO/COO ensuring alignment with strategic priorities

Integration and Validation:

• Cross-functional exchange examined correlations between impacts, dependencies, risks, and opportunities
• Results integrated into existing risk management system
• Joint review by Investor Relations, Corporate Sustainability, and Risk Management
• Final validation with all internal stakeholders and senior management

ESRS Application: This combined non-financial statement was prepared in partial application of Set 1 of the European Sustainability Reporting Standards (ESRS) as a framework in accordance with Section 289d HGB. The originally planned full application of ESRS was not realized due to lack of legal implementation in Germany by December 31, 2024.

Material Topics Coverage: The content is based on a double materiality assessment conducted in accordance with ESRS requirements. The analysis indicated that nine of the ten ESRS topics are generally considered material for HUGO BOSS in fiscal year 2024:

Material ESRS Topics:

• ESRS 2 (General Disclosures)
• E1 (Climate Change)
• E2 (Pollution)
• E3 (Water and Marine Resources)
• E4 (Biodiversity and Ecosystems)
• E5 (Resource Use and Circular Economy)
• S1 (Own Workforce)
• S2 (Workers in the Value Chain)
• S3 (Affected Communities)
• G1 (Business Conduct)

Disclosure Scope: However, the content included in this combined non-financial statement does not fully reflect the results of the double materiality assessment. The "Overview of ESRS Disclosure Requirements" section provides detailed information on the presence and scope of ESRS disclosure requirements.

Current Status: The information disclosed in accordance with ESRS is based on current interpretation of the standards. As a company subject to the Non-Financial Reporting Directive (NFRD), HUGO BOSS publishes this combined non-financial statement consistent with previous years' approach while preparing for future CSRD compliance.

Additional Information: The section "Additional Disclosures on the Combined Non-financial Statement" contains comprehensive details on ESRS disclosure requirement coverage and implementation approach.

Transition plan for climate change mitigation

Overview and Current Status

HUGO BOSS is committed to reducing greenhouse gas emissions and aims to achieving net zero emissions by 2050, in alignment with the Paris Agreement's 1.5°C target. However, as methodologies and international regulations continue to evolve, the Company's existing climate transition plan is currently under review. While our emission reduction targets for 2030 and 2050, remain unchanged and valid for now, we are actively working on an updated, comprehensive transition plan that incorporates recent advancements and better addresses today's challenges. Scheduled for publication in 2025, our revised plan will provide a robust framework for future action and align with best practices. Moving forward, we will report on its progress and outcomes, reinforcing our commitment to meaningful climate action.

Scope of the Transition Plan

The climate impact of our own operations is relatively low compared to those along our upstream and downstream value chain, with Scope 1 and 2 emissions accounting for only 5% of our total emissions. This is because the upstream stages of the value chain, in particular, involve CO2-intensive processes.

Starting in 2024, HUGO BOSS expanded its reporting to include 11 Scope 3 categories (up from eight in 2023), aligning with both GHG Protocol and Science Based Targets initiative (SBTi) guidelines.

Targets and Baselines

Net Zero Target

• Net zero emissions (Scope 1–3) by 2050 in full alignment with the UNFCCC Charter

2030 Mid-term Targets

HUGO BOSS has set the target to cut emissions by 50% (Scope 1–3) by 2030, based on a 2019 baseline (458,902 t CO2). This mid-term goal aligns with the requirements of the Fashion Industry Charter for Climate Action, which aims to limit global warming to a maximum of 1.5°C, governed by the UNFCCC.

As part of revising our transition plan, we are also reviewing our mid-term emission reduction targets to ensure they remain aligned with evolving standards.

Energy Targets

• 100% electricity from renewable sources by 2030 in our own operations. In 2024, a total of 73%, corresponding to 73,794 MWh of our consumed electricity, was renewable (2023: 60%; 57,086 MWh).
• 20% reduction in direct and indirect energy consumption per square meter by 2030 compared to the 2019 base year. The direct and indirect energy consumption in relation to the gross size (kWh/m²) decreased by 5% in 2024 compared to 2019.

Alignment with 1.5°C and SBTi

The mid-term goal aligns with the requirements of the Fashion Industry Charter for Climate Action, which aims to limit global warming to a maximum of 1.5°C, governed by the UNFCCC. The Company is committed to alignment with the Paris Agreement's 1.5°C target.

The transition plan enhancement underscores our commitment to comprehensive reporting across all relevant Scope 3 emission sources, aligning with both GHG Protocol and Science Based Targets initiative (SBTi) guidelines.

Current Emissions Performance (2024)

GREENHOUSE GAS EMISSIONS (IN T CO2e)

¹ Scope 1–3 emissions for 2019, as well as Scope 3 emissions for 2023 are not part of the auditing scope. ² Scope 1 emissions include direct emissions from owned or controlled sources and emissions from own vehicles (excluding electric vehicles). Due to corrections and improvements in data quality, prior-year figures have been adjusted retrospectively. ³ Scope 2 emissions are calculated according to the market-based approach using specific supplier emission factors for certified green electricity. For conventional electricity, specific country emission factors are used. Location-based Scope 2 emissions amounted to 39,146 t in 2024 (2023: 38,848 t). ⁴ Due to the improvement of data quality and corresponding corrections during the year, prior-year figures have been adjusted retrospectively. ⁵ The calculation of emissions for Scope 3.2 Capital goods is based on the average-spend based method according to the GHG Protocol. The data available at the time of the annual financial statements may be corrected retrospectively, so deviations from the previous year's figures are possible. ⁶ In 2024, 62% of the Scope 3 emissions were calculated using primary data. The calculation of the primary data share was based on input factor levels, excluding emission factor data.

Decarbonization Levers

FOCUS OF CLIMATE ACTIONS AT HUGO BOSS

Net zero emissions until 2050 (Scope 1-3)

By 2030:

• 50% reduction of Scope 1 and 2 emissions

  • Realize potentials:
    • Efficient technologies
    • Electricity from renewable energy sources

• 50% reduction of Scope 3 emissions

  • Drive change:
    • Use of more sustainable materials
    • Electricity from renewable energy sources
    • Optimized means of transport and transportation routes

• Join forces:

  • Training modules and tools for resource efficiency
  • Engage in collaborations

Key Actions in Own Operations

Our own production site in Izmir (Turkey) – by far the largest of our own production sites globally – has been certified in accordance with both ISO 14001 and ISO 50001 since 2014.

Data Quality and Methodology Enhancements

To enhance the accuracy and reliability of our Scope 3 emissions data, particularly for emissions from purchased goods and services, we have now implemented the Higg Materials Sustainability Index (MSI) and the Facility Environmental Module (FEM) tools. These tools are regularly maintained by Cascale, ensuring that our data and methodology continues to meet high standards of credibility. To ensure comparability, prior-year as well as base-year figures have been recalculated.

Carbon Credits and Removals

No substantive content disclosed regarding the use of carbon credits or removals in the transition plan.

Policies related to climate change mitigation and adaptation

HUGO BOSS has established several policies addressing climate change mitigation and adaptation across its operations and supply chain.

Environmental Policy

Scope: The policy applies globally across HUGO BOSS operations and supply chain, in alignment with local regulations.

Key content and principles:

• Sets strict standards to minimize environmental impact, conserve resources, reduce water consumption, and enhance energy efficiency
• Addresses significant environmental impacts including reliance on non-renewable energy, high energy consumption, and energy-intensive manufacturing
• Requires resource efficiency and adoption of renewable energy
• Suppliers are encouraged to adopt best practices

Monitoring and implementation:

• Tracking energy use and pollution levels
• Compliance with ISO 14001 (environmental management system) and ISO 50001 (energy management system)

International frameworks:

• Active collaboration with the United Nations Framework Convention on Climate Change (UNFCCC)
• Participation in the Zero Discharge of Hazardous Chemicals (ZDHC) program

Logistics Guideline

Scope: Global transportation processes at HUGO BOSS own sites and partner sites along the supply chain.

Key content and principles:

• Forms an integral part of the Environmental Policy
• Provides strategic framework for planning and executing global transportation processes
• Emphasizes low-emission transport options
• Aims to reduce carbon emissions throughout the logistics network
• Promotes optimizing delivery routes and consolidating shipments to minimize environmental impact

Supplier Code of Conduct

Scope: Applies to all suppliers across various operational aspects.

Key content and principles:

• Establishes clear standards and expectations for suppliers with strong emphasis on environmental protection
• Provides comprehensive guidelines to ensure suppliers meet stringent environmental requirements
• Requires identification and monitoring of energy sources and tracking of greenhouse gas emissions
• Suppliers must develop roadmaps to reduce energy consumption and emissions
• Requires responsible management of natural resources
• Suppliers must implement measures to avoid waste and pollution
• Requires efficient use of energy and water
• Ensures strict compliance with environmental regulations

Purpose: Accelerates climate protection within the supply chain and promotes a responsible and sustainable environmental culture in the supplier network.

Actions and resources in relation to climate change policies

Overview

HUGO BOSS has structured its climate actions around its net zero emissions target until 2050 (Scope 1-3), with interim targets for 2030 including 50% reduction of Scope 1 and 2 emissions and 50% reduction of Scope 3 emissions compared to 2019 baseline. The climate impact of own operations is relatively low compared to upstream and downstream value chain, with Scope 1 and 2 emissions accounting for only 5% of total emissions.

Climate Transition Plan Status: The Company's existing climate transition plan is currently under review as methodologies and international regulations continue to evolve. While emission reduction targets for 2030 and 2050 remain unchanged and valid, an updated comprehensive transition plan incorporating recent advancements is scheduled for publication in 2025.

Actions in Own Operations

ISO Certification at Izmir Production Site

• Scope: Own operations (production site in Izmir, Turkey)
• Description: Certified in accordance with both ISO 14001 (environmental management system) and ISO 50001 (energy management system) since 2014
• Target facility: Largest of HUGO BOSS's own production sites globally
• Time horizon: Certified since 2014, ongoing

Renewable Energy Transition

• Scope: Own operations
• Target: 100% electricity from renewable sources by 2030 (aligned with UNFCCC target)
• Progress: 73% (73,794 MWh) of consumed electricity was renewable in 2024 (2023: 60%; 57,086 MWh)
• Total renewable energy: 54% (73,794 MWh) of total consumed energy in 2024 (2023: 43%; 57,086 MWh)

Energy Efficiency Improvements

• Scope: Own operations
• Target: 20% reduction in direct and indirect energy consumption per square meter by 2030 compared to 2019 base year
• Progress: Direct and indirect energy consumption in relation to gross size (kWh/m²) decreased by 5% in 2024 compared to 2019
• Outcomes: Total energy consumption 137,155 MWh in 2024 (2023: 132,353 MWh). Despite slight increase in absolute consumption due to higher production volumes and expansion of facilities, emission intensity improvements achieved
• Results: Scope 1 and 2 emissions reduced by 12% compared to 2023 and 18% compared to 2019 base year (25,520 t in 2024 vs. 30,998 t in 2019)

Actions in Upstream and Downstream Value Chain

Supplier Auditing and Training Programme

• Scope: Upstream value chain (Tier 1 and Tier 2 suppliers)
• Description: Conducted audits to assess and verify compliance with environmental and climate protection requirements. Suppliers develop and implement action plans, reviewed in follow-up audits
• Capacity building: Regular training sessions provided to suppliers on environmental and climate protection measures, aiming to establish standardized energy and environmental management systems, including guidance on best practices for carbon accounting

Climate Action Training for the Fashion Industry

• Scope: Upstream value chain (Tier 1 and Tier 2 suppliers)
• Description: Co-developed in 2021 by Fashion Industry Charter for Climate Action and selected signatories
• Target audience: Garment, textile, and footwear manufacturers
• Resources: Available online, publicly available, free of charge, offered in multiple languages
• Content: Essential knowledge on climate change, industry environmental impact, energy efficiency, renewable energy, and practical carbon accounting techniques
• Time horizon: Launched 2021, ongoing voluntary training

Cascale Partnership and Higg FEM Implementation

• Scope: Upstream value chain
• Description: In 2024, joined Cascale collaborative platform to strengthen industry partnerships, enhance supplier engagement, and improve data management insights
• Tool: Implemented Higg Facility Environmental Module (Higg FEM) 4.0 on the Worldly platform
• Purpose: Accurately capture and manage Scope 3 emissions; one of the most widely used sustainability measurement tools in apparel and footwear industry
• Resources (non-financial): Conducted training sessions for key internal teams including brands' product divisions on Higg FEM functionality, benchmarking opportunities for optimized order placements, and country-specific analyses
• Time horizon: Implemented in 2024

Decarbonization Commitment for Tier 1 Suppliers

• Scope: Upstream value chain (Tier 1 suppliers)
• Description: Contractual obligation introduced at the beginning of 2025 requiring suppliers to:
  • Phase out coal
  • Report mandatory data through Higg FEM
  • Transition to renewable energy alternatives
• Purpose: Ensure supply chain activities align with sustainability goals, including transition to renewable energy sources
• Time horizon: Introduced beginning of 2025

Enhanced Scope 3 Emissions Methodology

• Scope: Upstream value chain
• Description: In 2024, refined methodology for calculating Scope 3 emissions to enhance accuracy and credibility, aligning fully with GHG Protocol
• Tools: Implemented Higg Materials Sustainability Index (MSI) and Facility Environmental Module (FEM) tools, regularly maintained by Cascale
• Outcomes: Expanded reporting to include 11 Scope 3 categories (up from 8 in 2023), aligning with both GHG Protocol and Science Based Targets initiative (SBTi) guidelines
• Results: GHG emission intensity per piece reduced by 8% compared to previous year and 39% compared to 2019 base year (based on Scope 3.1 purchased goods and services emissions)
• Time horizon: Implemented 2024

Transport and Logistics Optimization

• Scope: Downstream value chain (Scope 3.4 upstream transportation and distribution)
• Description: Progressively reduce transport-related greenhouse gas emissions by:
  • Consistently reducing air freight
  • Improving transport planning
  • Exploring alternatives such as biofuels with global logistics partners
• Policy linkage: Logistics Guideline (part of Environmental Policy) provides strategic framework for planning and executing global transportation processes, emphasizing low-emission transport options and consolidating shipments
• Time horizon: Ongoing

Key Performance Indicators and Outcomes

Total Emissions Performance (2024):

• Total GHG emissions: 550,788 t CO2e (2023: 487,253 t; 2019 baseline: 458,902 t)
• Increase of 20% compared to 2019 baseline, mainly due to strong increase in production volumes
• Emission intensity: 128 t CO2e/EUR million net revenue (2023: 116 t CO2e/EUR million)

Scope 1 and 2 Performance:

• 25,520 t CO2e in 2024 (2023: 28,844 t; 2019: 30,998 t)
• 12% reduction vs. 2023; 18% reduction vs. 2019 base year

Scope 3 Performance:

• 525,268 t CO2e in 2024 (2023: 458,409 t; 2019: 427,903 t)
• 15% increase vs. 2023; 23% increase vs. 2019 base year
• Despite absolute increase, GHG emission intensity per piece reduced by 8% vs. 2023 and 39% vs. 2019

Policy and Target Linkages

All actions link to:

• Environmental Policy: Sets strict standards to minimize environmental impact, conserve resources, reduce water consumption, and enhance energy efficiency across operations and supply chain
• Logistics Guideline: Integral part of Environmental Policy, emphasizes low-emission transport options
• Supplier Code of Conduct: Establishes clear standards for suppliers with emphasis on environmental protection, including roadmaps to reduce energy consumption and emissions, transition to renewable energy
• 2030 Targets: 50% reduction in Scope 1-3 emissions vs. 2019; 100% renewable electricity in own operations; 20% reduction in energy consumption per m²
• 2050 Target: Net zero emissions (Scope 1-3) aligned with UNFCCC Charter and Paris Agreement 1.5°C target
• Industry Commitments: Fashion Industry Charter for Climate Action (UNFCCC)

Targets related to climate change mitigation and adaptation

Primary Climate Targets

HUGO BOSS has established the following climate change targets:

Energy Targets (Supporting Climate Goals)

Progress to Date (2024)

Note on methodology: Starting in 2024, HUGO BOSS expanded Scope 3 reporting from 8 to 11 categories and implemented Higg MSI and FEM tools. Prior-year and base-year figures have been recalculated for comparability. The Company states it is reviewing mid-term emission reduction targets as part of revising its transition plan.

Target approach: HUGO BOSS commits to achieving emission reductions without relying on additional offsetting.

Energy consumption and mix

In 2024, the total energy consumption related to HUGO BOSS' own operations amounted to 137,155 MWh (2023: 132,353 MWh). This reflects a slight increase in energy consumption compared to the previous year, primarily driven by higher production volumes and a further expansion of office buildings, retail spaces, and warehouse facilities. In 2024, a total of 54%, corresponding to 73,794 MWh of consumed energy was renewable (2023: 43%; 57,086 MWh). This signifies that 46% (63,361 MWh) of total energy consumption is derived from fossil sources and therefore non-renewable (2023: 57%; 75,267 MWh).

Energy from fossil and renewable sources (in MWh)

Scope: Own operations, including own production facilities, warehouses, offices, and brick-and-mortar retail stores and outlets.

Energy intensity

The energy intensity, measured as the total energy consumption across all own production facilities, warehouses, offices, and brick-and-mortar retail stores and outlets relative to Group sales, amounted to 32 MWh per million EUR in 2024 (2023: 32 MWh per million EUR).

Gross Scopes 1, 2, 3 and Total GHG emissions

Total GHG emissions (Scopes 1, 2, 3)

In 2024, HUGO BOSS' global business activities resulted in a total of 550,788 metric tons (t) of greenhouse gas (GHG) emissions across Scope 1, 2, and 3 (2023: 487,252 t), calculated in accordance with the Greenhouse Gas Protocol. Total emissions increased by 13% year over year. Compared to the 2019 baseline, total emissions have increased by 20%, mainly due to a strong increase of production volumes since 2019.

The emission intensity – defined as total GHG emissions relative to net revenue of EUR 4,307 million – was 128 t CO₂e/EUR million in 2024 (2023: 116 t CO₂e/EUR million).

Footnotes:

¹ Scope 1–3 emissions for 2019, as well as Scope 3 emissions for 2023 are not part of the auditing scope.

² Scope 1 emissions include direct emissions from owned or controlled sources and emissions from own vehicles (excluding electric vehicles). Due to corrections and improvements in data quality, prior-year figures have been adjusted retrospectively.

³ Scope 2 emissions are calculated according to the market-based approach using specific supplier emission factors for certified green electricity. For conventional electricity, specific country emission factors are used. Location-based Scope 2 emissions amounted to 39,146 t in 2024 (2023: 38,848 t).

⁴ Due to the improvement of data quality and corresponding corrections during the year, prior-year figures have been adjusted retrospectively.

⁶ In 2024, 62% of the Scope 3 emissions were calculated using primary data. The calculation of the primary data share was based on input factor levels, excluding emission factor data.

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Scope 1 and 2 emissions development

HUGO BOSS emitted 25,520 t of Scope 1 and 2 emissions (2023: 28,844 t) in 2024, reflecting a 12% reduction compared to 2023 and an 18% reduction compared to the 2019 base year (2019: 30,998 t). This development mainly reflects an increased share of green electricity and the implementation of energy efficiency projects relative to the previous as well as to the base year.

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Scope 3 emissions by GHG Protocol category

In 2024, Scope 3 emissions amounted to 525,268 t, marking a 15% increase from the previous year (2023: 458,409 t) and an increase of 23% compared to the 2019 base year (2019: 427,903 t). The increase in Scope 3 emissions, in line with the rise in total emissions, is primarily due to the significantly higher production volume.

Starting in 2024, HUGO BOSS expanded its reporting to include 11 Scope 3 categories (up from eight in 2023), as outlined in the table below. This enhancement aligns with both GHG Protocol and Science Based Targets initiative (SBTi) guidelines.

Footnote:

⁵ The calculation of emissions for Scope 3.2 Capital goods is based on the average-spend based method according to the GHG Protocol. The data available at the time of the annual financial statements may be corrected retrospectively, so deviations from the previous year's figures are possible.

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Methodology notes

• HUGO BOSS refined its methodology for calculating Scope 3 emissions in 2024 to further enhance accuracy and credibility, aligning fully with the methodology outlined by the GHG Protocol.
• For determining Scope 3.1 emissions from purchased goods and services, the Company has now implemented the Higg Materials Sustainability Index (MSI) and the Facility Environmental Module (FEM) tools. These tools are regularly maintained by Cascale, ensuring that data and methodology continues to meet high standards of credibility.
• To ensure comparability, prior-year as well as base-year figures have been recalculated.
• Despite an increase in production volume, HUGO BOSS successfully reduced GHG emission intensity per piece by 8% compared to the previous year, and by 39% compared to the base year of 2019. This calculation is based on emissions from Scope 3.1 purchased goods and services, that do not include emissions from own production sites.
• The Company has also adjusted the baseline of its emissions reduction target to ensure accurate comparison, applying only to Scope 3 categories with updated methodologies.

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Emission reduction targets

HUGO BOSS has set the target to cut emissions by 50% (Scope 1–3) by 2030, based on a 2019 baseline (458,902 t CO₂). This mid-term goal aligns with the requirements of the Fashion Industry Charter for Climate Action, which aims to limit global warming to a maximum of 1.5°C. Moreover, the Company is dedicated to achieving net zero emissions (Scope 1–3) by 2050 in full alignment with the UNFCCC Charter.

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GHG intensity

The GHG intensity in 2024 was 128 t CO₂e per EUR million net revenue (2023: 116 t CO₂e per EUR million).

Anticipated financial effects from material physical and transition risks and potential climate-related opportunities

Disclosure Status

ESRS E1-9 is not applied according to the disclosure requirements table.

Physical Risks

According to the data point mapping table:

• ESRS E1-9 66: Exposure to climate-related physical risks - not applied
• ESRS E1-9 66 (a); 66 (c): Disaggregation by physical risk and asset location - not applied

Transition Risks

No specific disclosure provided.

Climate-Related Opportunities

According to the data point mapping table:

• ESRS E1-9 69: Portfolio exposure to climate-related opportunities - not applied

Real Estate Assets

According to the data point mapping table:

• ESRS E1-9 67 (c): Real estate asset value by energy-efficiency classes - not applied

Policies related to pollution

HUGO BOSS has implemented policies to address pollution prevention and control, with a particular focus on chemical management and restricted substances.

Environmental Policy

• Scope: Applies globally across operations and supply chain, in alignment with local regulations
• Key content: Sets the framework for reducing environmental pollution overall and caring for the environment. The policy underscores strict standards to minimize environmental impact, conserve resources, reduce water consumption, and enhance energy efficiency. It addresses significant environmental impacts including pollution levels and requires resource efficiency
• Monitoring: Tracking energy use, pollution levels, and compliance with ISO 14001 (environmental management system) and ISO 50001 (energy management system)
• Supplier engagement: Suppliers are encouraged to adopt best practices
• Links to international standards: Collaboration with the Zero Discharge of Hazardous Chemicals (ZDHC) program and the United Nations Framework Convention on Climate Change (UNFCCC)

Chemical Management Policy

• Key content: Outlines clear guidelines for the storage, use, and disposal of hazardous substances, aiming to minimize environmental impact and actively promote safer alternatives. Addresses key concerns such as preventing water pollution and reducing air and soil contamination. Prioritizes conscious and safe use of chemicals with both environmental and health considerations
• Links to international standards: Adheres to the Zero Discharge of Hazardous Chemicals (ZDHC) initiative, which HUGO BOSS joined in 2017. The ZDHC Manufacturing Restricted Substances List (MRSL) identifies harmful chemical formulations that need to be phased out, sets strict limits for critical process chemicals, and supports efforts to monitor and mitigate water pollution
• Supplier requirements: The MRSL forms an integral part of HUGO BOSS' supplier contracts, requiring all suppliers, including own production facilities, to verify their chemical inventories against the MRSL. HUGO BOSS extends the obligations of the MRSL beyond Tier 1 suppliers, mandating that upstream suppliers also comply

Restricted Substances List (RSL) and Product Compliance Guideline

• Key content: Comprehensive documents that define product safety and marketability requirements, setting a clear framework for compliance throughout the supply chain. The RSL strictly regulates substances in products to ensure they meet the highest safety standards
• Scope: All suppliers are required to adhere to the RSL. HUGO BOSS extends these obligations beyond Tier 1 suppliers, mandating that upstream suppliers also comply
• Links to international standards: Aligns with the recommendations of the Apparel and Footwear International RSL Management (AFIRM) Group, incorporating their substance lists, thresholds, and test methods for a structured approach to managing restricted substances
• Objective: Ensures products are free from harmful substances

Pollution of air, water and soil

Disclosure Status

ESRS E2-4 (Pollutants emitted to air, water, soil) is not applied according to HUGO BOSS's disclosure requirement application table.

Qualitative Information

HUGO BOSS recognizes pollution challenges across its value chain:

Water Pollution: During raw material extraction, pesticides and fertilizers contaminate water sources, particularly in regions with less-developed agricultural practices. Textile production significantly affects water quality due to chemical substances such as fertilizers in cotton farming and various processing agents. These substances are predominantly applied in wet processes such as dyeing, washing, bleaching, and tanning, which are major contributors to water pollution through the discharge of untreated wastewater.

Soil Pollution: Soil degradation is caused by overgrazing, poor farming practices, and excessive chemical use. Improper disposal of textile waste pollutes soil and groundwater.

Microplastics: Synthetic textiles release microplastics during wear and washing, polluting rivers and oceans, and harming marine life and human health.

Policies and Standards

The company has implemented:

• Environmental Policy setting framework for reducing environmental pollution
• Chemical Management Policy for conscious and safe use of chemicals
• Zero Discharge of Hazardous Chemicals (ZDHC) initiative membership (since 2017)
• ZDHC Manufacturing Restricted Substances List (MRSL) integrated into supplier contracts
• Restricted Substances List (RSL) and Product Compliance Guideline
• AFIRM Group membership for chemical compliance
• PFAS eliminated from production processes (since 2018)

Targets

Chemical Management: All Tier 1 and direct Tier 2 suppliers using wet processes to meet ZDHC MRSL reporting or equivalent standard by 2030. Interim target: all strategic Tier 1 suppliers using wet processes by 2025.

2024 Performance:

• 42% of production sites in scope met chemical inventory requirements (2023: 47%)
• 65% of strategic suppliers met requirements (2023: 67%)
• 62% of production sites complied with wastewater test specifications (2023: 58%)
• 85% of strategic suppliers complied with wastewater tests (2023: 78%)

Microplastics Reduction: Eliminate use of polyester and polyamide in all products' fabrics and linings by 2030.

• 2024: 18% of fabrics and linings were polyester/polyamide (2023: 18%)

Natural Materials: Source 100% of natural materials in products' fabrics and linings according to regenerative principles or through closed-loop recycling by 2030 (excluding license products).

• 2024: 12% met these criteria (2023: 1%)

Quantified Emissions Data

No quantified emissions data to air, water, or soil in kg or tonnes per year is disclosed in accordance with ESRS E2-4 requirements.

Substances of concern and substances of very high concern

Policies related to pollution

HUGO BOSS is dedicated to the conscious and safe use of chemicals, prioritizing both environmental and health considerations through its Chemical Management Policy. This policy outlines clear guidelines for the storage, use, and disposal of hazardous substances, aiming to minimize environmental impact and actively promote safer alternatives. It addresses key concerns such as preventing water pollution and reducing air and soil contamination by adhering to internationally recognized standards, including the Zero Discharge of Hazardous Chemicals (ZDHC) initiative, which HUGO BOSS joined in 2017. This initiative provides standardized tools to assess and enhance suppliers' chemical management practices.

A core element of this initiative is the ZDHC Manufacturing Restricted Substances List (MRSL), which identifies harmful chemical formulations that need to be phased out. The MRSL sets strict limits for critical process chemicals and supports efforts to monitor and mitigate water pollution. It forms an integral part of HUGO BOSS' supplier contracts, requiring all suppliers, including our own production facilities, to verify their chemical inventories against the MRSL.

To ensure that our products are free from harmful substances, we have established a Restricted Substances List (RSL) and Product Compliance Guideline. These comprehensive documents define product safety and marketability requirements, setting a clear framework for compliance throughout our supply chain. Our suppliers are required to adhere to our RSL, which strictly regulates substances in our products to ensure they meet the highest safety standards. It aligns with the recommendations of the Apparel and Footwear International RSL Management (AFIRM) Group, incorporating their substance lists, thresholds, and test methods for a structured approach to managing restricted substances.

HUGO BOSS extends the obligations of the MRSL and the RSL beyond its Tier 1 suppliers, mandating that upstream suppliers also comply with its standards, fostering collective commitment to product safety and sustainability.

Actions related to pollution

To reduce environmental impacts in production, we are collaborating closely with our suppliers and other businesses in the global apparel industry, including through initiatives such as the ZDHC. By adopting the ZDHC "Roadmap to Zero" framework, we have enhanced our ability to monitor and improve chemical management across the supply chain. Additionally, as a member of the AFIRM Group, we leverage their tools to maintain high standards of chemical compliance and product safety at every stage of production.

Recognizing the environmental risks posed by chemicals in products, HUGO BOSS eliminated the use of harmful per- and polyfluoroalkyl substances (PFAS) in production processes as early as 2018. This ban is now an integral part of our RSL and we remain committed to phasing out additional harmful substances and materials in the future.

To ensure our products are free from substances of very high concern (SVHC), we conduct regular monitoring through rigorous testing. Our Product Risk Database integrates third-party test reports for products, fabrics, and trimmings, enabling us to effectively track restricted substances and particularly focus on identifying and managing SVHCs. This proactive approach aims to ensure compliance with regulatory requirements while minimizing risks to consumers and the environment.

Targets related to pollution

HUGO BOSS is committed to ensuring that all Tier 1 and direct Tier 2 suppliers using wet processes meet the ZDHC MRSL reporting or an equivalent standard by 2030. We have set an interim target for all strategic Tier 1 suppliers using wet processes to meet the requirements by 2025. In 2024, 42% of the production sites in scope met the chemical inventory requirements (2023: 47%), including 65% of our strategic suppliers (2023: 67%). For wastewater tests, 62% of the production sites in scope complied with the specifications (2023: 58%), including 85% of our strategic suppliers (2023: 78%).

ESRS E2-5 status

According to the ESRS disclosure requirements index, ESRS E2-5 is marked as "not applied" in the company's reporting.

Policies related to water and marine resources

HUGO BOSS has applied ESRS E3-1 partially. According to the disclosure table, the company has assessed ESRS E3-1 paragraph 9 (Water and marine resources) as partially applied, but ESRS E3-1 paragraph 13 (Dedicated policy on water and marine resources) is marked as "not material" and ESRS E3-1 paragraph 14 (Sustainable oceans and seas) is marked as "not applied".

The excerpts provided do not contain any specific named policies related to water and marine resources, their scope, governance structures, content, public availability, linkages to international standards, or monitoring mechanisms. The disclosure table indicates that while some aspects of E3-1 are addressed, the company has determined that a dedicated policy on water and marine resources is not material to its operations.

Actions and resources related to water

Supply chain water management partnership

• Scope: Upstream value chain (supply chain)
• Description: Partnership established to gain insights into water usage across the supply chain and design effective strategies for reducing water consumption
• Time horizon: Multi-year initiative; first year focused on establishing partnership and creating foundation for comprehensive data collection
• Expected outcomes:
  • Detailed action roadmap
  • Optimal resource allocation
  • Comprehensive data collection on supply chain water usage
• Resources allocated: Not quantified

Own operations water management initiatives

Groundwater collection systems (Turkey production site)

• Scope: Own operations
• Location: Largest production site in Turkey
• Description: Installed groundwater collection systems to support green area irrigation and sanitary installations
• Time horizon: Implemented in prior years
• Resources allocated: Not quantified

Water-saving aerator fittings

• Scope: Own operations
• Location: Multiple locations
• Description: Water-saving aerator fittings that reduce water consumption by incorporating air into the water flow
• Time horizon: Implemented in prior years
• Resources allocated: Not quantified

Water consumption

Total freshwater consumption

Disclosure scope

The water consumption data disclosed covers own operations only. ESRS E3-4 is classified as "not material" according to the company's disclosure requirements table.

Water management approach

HUGO BOSS recognizes material impacts on water resources, particularly through cultivation of water-intensive raw materials like cotton and water use in upstream production processes. The company has implemented water management initiatives at its own sites, including:

• Groundwater collection systems at the largest production site in Turkey for green area irrigation and sanitary installations
• Water-saving aerator fittings at multiple locations to reduce consumption by incorporating air into water flow

In 2024, the company launched a partnership with Cascale and Worldly to enhance tracking of water consumption at suppliers, though comprehensive supply chain water data is not yet disclosed. The focus in the first year was on establishing the partnership and creating a foundation for future data collection.

Anticipated financial effects from material water and marine resources-related impacts, risks and opportunities

ESRS E3-5 is listed as not applied in HUGO BOSS's disclosure requirements application table.

Transition plan and consideration of biodiversity and ecosystems in strategy and business model

Integration into corporate strategy and business model

Our Biodiversity Strategy Paper emphasizes our responsibility to care for and enhance ecosystems as part of our broader sustainability commitment. The framework is designed to address key dependencies on natural resources such as cotton and wool, while including specific, measurable targets to reduce the negative environmental impact across our supply chain. Our approach prioritizes responsible sourcing and generally excludes materials such as exotic leather.

Our strategy addresses both physical risks – such as fluctuations in raw material availability from climate-sensitive regions – and transition risks tied to the ongoing shift towards regenerative or closed-loop materials.

Use of TNFD and other frameworks

Our risk assessment process is guided by the LEAP (locate, evaluate, assess, and prepare) framework from the Taskforce on Nature-related Financial Disclosure (TNFD), which helps us to identify biodiversity-related dependencies and risks across our supply chain.

Recognizing the importance of intact ecosystems and biodiversity, we are taking steps to identify, assess, and disclose nature-related risks and opportunities, thereby improving decision-making and accountability. In this context, we plan to publish our first Taskforce on Nature-related Financial Disclosures (TNFD) report in 2025, drawing on our experience with the Task Force on Climate-related Financial Disclosures (TCFD) report, which we have been publishing annually since 2021. By integrating biodiversity and ecosystem considerations into our financial and strategic planning, we aim to further strengthen our sustainability commitment.

Biodiversity targets

To contribute to the protection of biodiversity and ecosystems as part of its broader sustainability strategy, HUGO BOSS has set the goal of sourcing 100% of natural materials used in its products' fabrics and linings according to regenerative principles or through closed-loop recycling by 2030. License products are excluded from this goal. As of 2024, 12% of our natural materials have already met these criteria (2023: 1%). This commitment is aimed to minimize our impact on natural resources while actively supporting ecological restoration. By prioritizing regenerative farming, we aim to enhance soil health, restore habitats, and promote biodiversity, moving beyond conventional practices such as monoculture farming and excessive pesticide use. Our focus on closed-loop recycling further reduces the dependence on virgin raw materials, decreasing waste and protecting ecosystems from resource extraction pressures.

Our Biodiversity Strategy Paper also aims to sustain biodiversity by prioritizing the avoidance of deforestation for resources including cotton and wood-based packaging.

Geographic and value-chain scope

To prepare for TNFD reporting, a key priority in 2024 was to identify and implement a tool for a comprehensive biodiversity impact assessment. In 2025, we plan to extend the tool's application to our Tier 1 suppliers and Tier 4 farmers practicing regenerative farming. For Tier 1, our initial focus will be on identifying suppliers located near biodiversity hotspots and ecologically sensitive areas. A thorough analysis will assess aspects such as land use and changes, proximity to sensitive ecosystems, and the presence of threatened species. These findings will inform the development of our biodiversity strategy and a transition plan with actionable steps and timelines. Once these foundations are established, we will expand the assessment to include other relevant suppliers. In close collaboration with key stakeholders like regenerative farmers and local communities, we will then implement the plan to support both biodiversity preservation and community resilience.

To enhance transparency and accountability, HUGO BOSS is committed to ensuring traceability across its supply chain. We source from certified suppliers, such as tanneries accredited by the Leather Working Group (LWG) and adhere to Canopy's standards for our wood-based materials to prevent deforestation. This includes our standard that all man-made cellulosic fibers we use – such as lyocell, modal, and viscose – are required to be certified.

Partnerships and collaborations

We collaborate closely with organizations such as Canopy to adopt practices that support biodiversity. These partnerships strengthen our commitment to better raw material sourcing and highlight our role in caring for vulnerable ecosystems.

HUGO BOSS is committed to forest conservation by responsibly sourcing materials for paper, packaging, and fabrics. This approach is reflected in our Commitment to Protect Forests, which applies to all wood-derived materials used in paper, packaging, and fabrics throughout our global operations. This policy was developed with careful consideration of our stakeholders' interests, including environmental organizations, suppliers, and consumers. In support of this commitment, HUGO BOSS adheres to recognized third-party standards, including those of the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC), reinforcing our dedication to sustainable sourcing.

In 2024, we expanded our portfolio of approved farms and farmer associations, laying the foundation for scaling our regenerative farming initiative in the coming years. A cornerstone of this effort is our partnership with Raddis, a cooperative based in India promoting regenerative farming and empowering farmers directly. In 2024, we extended this partnership for another three years to further strengthen these efforts.

Investment commitments

To promote biodiversity not only on land but also in the oceans and to support the restoration of marine ecosystems, in 2024, the HUGO BOSS Foundation has entered into a long-term partnership with Coral Gardeners. Established in 2023, the HUGO BOSS foundation is dedicated to supporting climate and environmental protection initiatives around the globe. Coral Gardeners, a non-profit organization, focuses on the restoration and conservation of coral reefs in regions such as French Polynesia, Fiji, and Thailand. As part of this partnership, the HUGO BOSS Foundation will contribute EUR 2 million to Coral Gardeners over several years, reinforcing its commitment to protecting our planet's ecosystems.

Regenerative agriculture approach

At HUGO BOSS, we recognize the importance of fostering direct engagement with farmers and agricultural associations committed to cultivating regenerative raw materials. To ensure consistency and alignment across our regenerative sourcing efforts, we developed an internal Regenerative Agriculture Brochure. This comprehensive guide outlines our approach to regenerative farming and establishes clear criteria across four key areas: soil health, biodiversity, animal welfare, and social fairness. A key aspect is the detailed explanation of our evaluation process for regenerative partners, which follows five distinct steps: scouting, nominating, interviewing, evaluating and approving. Furthermore, the brochure outlines the three performance levels of our regenerative principles: improving soil health and conserving biodiversity, restoring biodiversity, and promoting social fairness. This structured approach ensures targeted support for farmers at various stages of their regenerative journey.

Regenerative farming is a holistic approach that aims to restore and enhance soil health, biodiversity, and ecosystem resilience. It promotes practices such as crop rotation, reducing the use of critical chemicals, and protecting endangered species to support more environmentally friendly agricultural systems. Since there is currently no standardized definition of this concept, HUGO BOSS has developed its own clearly defined standards.

Policies related to biodiversity and ecosystems

HUGO BOSS has partially applied ESRS E4-2. The excerpts indicate the company has:

Policies to address deforestation

The disclosure table shows that HUGO BOSS has policies to address deforestation (ESRS E4-2 24 (d) marked as applied and referenced under "Policies related to biodiversity and ecosystems").

Specific policy details not disclosed: The excerpts do not provide the name of a specific deforestation policy, its scope, governance structure, key content, public availability, links to international standards, or monitoring mechanisms.

Other biodiversity policies

The company has marked as "not applied":

• Sustainable land/agriculture practices or policies (ESRS E4-2 24 (b))
• Sustainable oceans/seas practices or policies (ESRS E4-2 24 (c))

This indicates HUGO BOSS does not have policies in these specific areas of biodiversity and ecosystems.

Targets related to biodiversity and ecosystems

ESRS E4-4 is listed as 'partially applied' in the disclosure requirements table. However, no specific targets related to biodiversity and ecosystems are disclosed in the provided excerpts.

The excerpts do not contain:

• Target metrics or values
• Target years or baseline years
• Scope definitions for biodiversity targets
• Progress indicators

While the disclosure requirement is marked as partially applied, the actual target details are not included in the extracted portions of the sustainability statement.

Anticipated financial effects from biodiversity and ecosystem-related impacts, risks and opportunities

ESRS E4-6 is listed as not applied in the disclosure requirement application status table.

Policies related to resource use and circular economy

ESRS E5-1 is listed as partially applied in HUGO BOSS's CSRD sustainability statement. However, the provided excerpts do not contain any specific information about policies related to resource use and circular economy.

The excerpts only show:

• A table indicating that ESRS E5-1 is "partially applied" with reference to "Policies related to resource use and circular economy"
• A section on "Additional ESG data points below materiality thresholds" which mentions waste and freshwater consumption metrics but does not describe policies

No named policies, their scope, governance arrangements, key content, public availability, links to international standards, or monitoring mechanisms related to resource use and circular economy are disclosed in the provided excerpts.

Resource Inflows

HUGO BOSS relies on a variety of resources to support its operations and value chain activities. These include both natural and synthetic materials, as outlined in the following tables. Biological materials such as cotton, wool, and leather constitute a significant share of input materials and are carefully selected to meet sustainability standards, prioritizing certified and consciously managed supply chains. Synthetic materials, such as polyester and polyamide, also form an integral part of input materials. To reduce reliance on virgin resources, HUGO BOSS is increasingly focusing on recycled alternatives. The company is fully committed to continuously expanding the use of better and recycled materials across its brands' collections.

Natural and Synthetic Materials Used

Notes:

1. Materials classified as more sustainable by HUGO BOSS must either be certified by an external standard such as the Organic Content Standard (OCS), be recycled, or be sourced through mass balance systems like Cotton made in Africa (CmiA). Specifically, cotton is also considered more sustainable if it comes from verified regenerative farming practices.
2. Recycled materials are generally classified as "more sustainable," so the values presented here also contribute to the share of more sustainable materials.
3. "Other" biological materials include other animal-derived materials, such as alpaca wool or goat hair.
4. "Other" fossil-based materials include acrylic or polypropylene.
5. "Other" cellulose-based materials include cupro and acetate.

Packaging Materials Used

Packaging is essential for protecting products during transport and shipping, while reinforcing the brands' premium positioning in the global apparel market. In 2024, 84% of product packaging was made from renewable materials (2023: 85%). As part of the commitment to resource conservation, the company is transitioning to more sustainable raw materials, including certified and recycled sources. In 2024, 92% of paper packaging was certified (2023: 93%), and 59% was made from recycled material (2023: 70%), reflecting dedication to sourcing from consciously managed forests and reducing the use of virgin materials. In 2024, 100% of packaging materials were recyclable (2023: 100%).

Resource outflows

Circular products and design

HUGO BOSS aims for 80% of its apparel products to be circular by 2030 (measured by production volume, number of apparel items). In 2024, the company increased this share to 33%, making further progress toward the 2030 goal (2023: 17%).

Circular products at HUGO BOSS must meet three criteria:

• Using renewable or recycled raw materials
• Being long-lasting
• Being designed for recycling (e.g., by reducing the use of material mixes)

The company adheres closely to circular.fashion's Circular Design Criteria, offering a comprehensive framework for circular textile products. HUGO BOSS is continuously working on increasing the use of recycled post-consumer textile waste in its collections.

An internal Circular Product Policy provides detailed information on:

• Internal organizational responsibilities
• Circular design criteria
• A list of materials that can be used in circular styles
• Guidelines on how to design products to be recyclable

Product innovation and durability

The company emphasizes "optimizing wearing comfort through the increased use of innovative materials" and focuses on "high quality and durability of our collections" as part of its sustainability strategy. BOSS Performance product range combines traditional formalwear outfits with innovative sportswear elements, including super-stretchable, machine-washable, lightweight, wrinkle-free, and water-repellent products.

Packaging recyclability

In 2024, 100% of packaging materials were recyclable (2023: 100%), demonstrating the company's efforts to conserve resources and reduce waste.

Materials with recycled content

See detailed breakdown in materials table showing recycled content percentages for various material categories (cotton, polyester, polyamide, etc.).

Waste

Total waste generated

Total waste disposed in 2024: 7,870 metric tons (2023: 8,916 metric tons)

Note: This figure represents waste from own operations and is disclosed as an additional ESG data point below materiality thresholds.

Waste management approach

The Environmental Policy underscores HUGO BOSS' commitment to sustainability by setting strict standards to minimize environmental impact, conserve resources, reduce water consumption, and enhance energy efficiency across operations and supply chain. The policy addresses significant environmental impacts and requires resource efficiency.

Monitoring involves:

• Tracking energy use
• Pollution levels
• Compliance with ISO 14001 (environmental management system) and ISO 50001 (energy management system)

Suppliers are encouraged to adopt best practices, with the policy applying globally and in alignment with local regulations. The company actively collaborates with organizations such as the United Nations Framework Convention on Climate Change (UNFCCC) and the Zero Discharge of Hazardous Chemicals (ZDHC) program.

Packaging waste reduction

HUGO BOSS is committed to reducing packaging and continuously improving its environmental impact through responsible material choices and innovative solutions.

2024 achievements:

• Successfully reduced packaging weight per item by 15% compared to 2023
• Target: achieve a 30% reduction in single-use plastic packaging per item by 2030 (excluding hangers and suit bags), compared to 2023 levels
• In 2024, single-use plastic packaging slightly increased by 4%

This target encompasses product, transport, e-commerce, and service packaging.

Waste minimization initiatives

Eightyards subsidiary: In 2024, HUGO BOSS successfully launched Eightyards, a subsidiary dedicated to the reuse and recycling of surplus materials. The concept is strategically aligned with the company's commitment to accelerate resource-efficient production processes and the reduction of post-production waste. Officially starting operations in early 2025, Eightyards aims to become a leading player in recycling and repurposing surplus materials across various industries, including fashion.

Digital development: The digitalization of product development (around 65% of products in 2024) allows for "predicting trends more accurately, better anticipating customer preferences, and further reducing the need for physical samples, thus minimizing waste and reducing CO2 emissions."

Inventory management

The impairment on inventories resulted in a net expense of EUR 13,517 thousand (2023: impairment reversals of EUR 35,970 thousand), which is included in the cost of sales.

Policies related to own workforce

HUGO BOSS has established a comprehensive set of policies governing its own workforce, rooted in respect for human rights and international labor standards. All Group-wide policies, unless otherwise stated, are monitored yearly and updated as necessary by the Company's Human Rights Officer.

Human Rights Statement

• Approval and oversight: Signed by the Managing Board
• Key content: Reinforces the Company's commitment to upholding international standards, outlines responsibility to address human rights risks, and emphasizes dedication to eliminating all forms of discrimination
• Review: Reviewed annually to ensure ongoing relevance, effectiveness, and actuality; most recent update in 2024
• Public availability: Publicly available in several languages
• Links to standards: Based on internationally recognized standards including the UN's Universal Declaration of Human Rights (UDHR), the International Labour Organization (ILO) Core Conventions, and the OECD Guidelines for Multinational Enterprises

Human Rights Policy

• Scope: Binding standards for all employees and partners
• Key content: Ensures fair treatment, decent working conditions, and compliance with national laws on working hours, freedom of association, occupational health and safety, and environmental protection. Enforces working hour caps and guidelines on overtime to safeguard employee health, well-being, and productivity. Mandates at least statutory minimum wage, and where local standards are insufficient, a living wage standard is applied
• Review: Undergoes regular updates; most recent revision completed in early 2025
• Public availability: Publicly available
• Links to standards: Based on internationally recognized labor and social standards
• Monitoring: Compliance monitored by Human Rights Officer

Health and Safety Commitment

• Scope: All operations and partners
• Key content: Emphasizes protection of physical safety and personal dignity
• Links to standards: Based on internationally recognized labor and social standards

Child Labor and Forced Labor Policy

• Scope: All operations and partners, global value chain
• Key content: Zero-tolerance stance towards child labor, forced labor, and human trafficking. Mandates strict prohibitions on child labor, forced labor and human trafficking in all forms, as well as exploitation of vulnerable groups. Sets clear guidelines regarding employment of young workers. Requires preventive measures such as age verification during hiring, regular audits, and targeted training. In cases of violations, immediate action is taken to address the issue and support affected individuals, with confidential reporting channels reinforcing compliance
• Review: Reviewed and updated regularly; latest revision finalized in early 2025
• Links to standards: Aligned with ILO Core Conventions
• Monitoring: Regular audits and training for employees and partners

Code of Conduct

• Scope: Group-wide legal and ethical principles for employee conduct
• Approval and oversight: Oversight by the Managing Board
• Key content: Establishes foundation of compliance across areas including fair competition, avoiding conflicts of interest, proper handling of Company information, and data protection. Ensuring fair working conditions and respectful treatment in the workplace is central to the Code, as is maintaining zero tolerance toward corruption. Covers decent, safe, and fair working conditions; occupational health and safety; environmental and biodiversity protection; animal welfare; avoidance of conflicts of interest; antitrust law and anti-corruption; data protection
• Distribution: Employees receive a copy or online access via QR code along with employment contract. Employees continuously familiarized with regulations
• Review: Most recent revision in 2022
• Public availability: Available in more than 14 languages on corporate website
• Monitoring: Zero tolerance for willful misconduct or violations

Anti-Discrimination, Anti-Harassment, and Gender Equality Commitment and Policy

• Scope: All employees
• Key content: Emphasize efforts towards a discrimination- and harassment-free working environment. Promotes respect for full spectrum of diversity, including race, gender, sexual orientation, age, and more. Strict zero-tolerance stance on any form of discrimination or harassment, upheld through strict policies and supported by management's commitment to equal treatment for all employees
• Links to standards: Aligning with ILO and UN conventions

Diversity, Equity, and Inclusion (DE&I) Policy

• Governance: Firmly anchored within the global Human Resources (HR) department
• Key content: Commitment to creating an inclusive working environment where all employees are treated equitably and empowered to thrive
• Status: Currently being developed, with publication expected in 2025

Fair Pay Commitment

• Scope: All employees
• Key content: Stipulates that all employees are to be compensated fairly and equitably, in accordance with local laws and international labor standards. Committed to ensuring equal pay for work of equal value, with regular reviews to ensure pay practices are transparent and free from bias

Supplier Code of Conduct (SCoC)

• Scope: All partners and their networks, including own production sites
• Key content: Based on internationally recognized labor and social standards; applies not only to partners but also to own production sites
• Monitoring: Compliance monitored through regular audits and supported with training on critical topics
• Links to standards: Based on internationally recognized labor and social standards

Additional Local Policies

• The international subsidiaries of HUGO BOSS structure their HR management by means of additional, decentralized policies to adapt to their particular situation while complying with national law

Monitoring and Governance

Unless stated otherwise, Group-wide policies are monitored yearly and if necessary updated by the Company's Human Rights Officer. The Human Rights Officer monitors human rights risks and reports at least twice per year to the Managing Board and the Audit Committee of the Supervisory Board on identified risks and the due diligence process.

Taking action on material impacts on own workforce

Company Culture and Values Implementation

Action: Five core values implementation (entrepreneurial spirit, personal ownership, team mentality, simplicity & quality, and youthful spirit) embedded in "CLAIM 5" strategy

• Scope: Own operations
• Key initiatives:
  • Mandatory e-learning module on ethical conduct and core values (retaken every 18 months)
  • Workshops and town hall meetings to embed principles into everyday actions
  • Annual employee survey to assess whether core values are actively lived
  • Survey results ("Trust Index") integrated into long-term incentive program (LTI) for Managing Board and eligible senior management

Leadership Development

Action: Leadership Development Program (LDP)

• Scope: Own operations
• Framework: Built on Leadership Mindset framework with four pillars: orientate, challenge, harbor, and connect
• Purpose: Leaders act as role models, empowering teams and embodying core values
• Expected outcomes: Inspiring teams to excel and reinforcing cultural foundation

Code of Conduct

Action: Code of Conduct implementation

• Scope: Group-wide (own operations)
• Coverage: Provides binding framework for professional conduct covering:
  • Avoidance of conflicts of interest
  • Antitrust law and anti-corruption
  • Employee interactions and stakeholder engagement
• Link to policy: Foundation of compliance efforts, supported by detailed Group policies

Note: The document indicates ESRS S1-4 is "partially applied" but specific time horizons, quantified financial resources, and detailed KPIs for individual actions are not disclosed in the provided excerpts.

Characteristics of the undertaking's employees

Total headcount and FTE

At the end of fiscal year 2024, on a headcount basis, HUGO BOSS employed a total of 21,286 employees worldwide (2023: 21,899). This includes all active employees, including white-collar workers, commercial staff, blue-collar workers, learners (including working students, apprentices, and interns), and temporary staff. The decrease of 613 headcounts compared to the prior year primarily reflects a moderate decrease in both temporary staff as well as in corporate functions.

On a full-time equivalent (FTE) basis, excluding learners and temporary staff, this corresponds to 18,623 employees as of December 31, 2024 (December 31, 2023: 18,738).

Headcount by gender

Headcount by country

This table aligns with ESRS requirements, providing information on countries representing at least 10% of our global workforce. All countries below the 10% threshold are reported under "Other."

Headcount by region

HUGO BOSS employees (in %)

Headcount by employment contract type (permanent/temporary/non-guaranteed hours)

By gender:

By region:

Headcount by employment type (full-time/part-time)

Not explicitly disclosed in tables. Text notes that FTE basis excludes learners and temporary staff.

Headcount by functional area

HUGO BOSS employees (in %)

By type:

At the end of 2024, 15,230 employees (2023: 15,725) worked in the commercial sector, while 6,056 employees (2023: 6,174) were assigned to industrial activities.

Headcount by age group

Employee turnover and new hires

In 2024, HUGO BOSS hired 6,259 new employees worldwide (2023: 7,242). The total number of all employees who have left HUGO BOSS during the reporting period amounted to 6,667 employees (2023: 5,583), including inactive employment relationships. Employees are counted as having left the Company only upon official contract termination. Transitions from temporary roles, internships, or student positions to permanent roles are recorded as internal transfers, not new hires.

For both metrics, HUGO BOSS accounts all employees excluding learners and temporary staff.

The resulting total turnover rate amounted to 32% in 2024 (2023: 27%). Employee turnover is calculated by dividing the total number of employees who left the Company ("leavers") during the year by the total number of employees at year-end (active and inactive employment relationships, excluding learners and temporary staff).

At a level of 22%, the employee-related turnover (voluntary departures only), based on total headcounts, increased slightly year over year (2023: 18%). The rate in retail operations was 32% in 2024 (2023: 30%), while in corporate functions it amounted to 15% (2023: 10%).

Average headcount for the year

Methodology notes

• All employee metrics are reported on a headcount basis unless otherwise specified.
• FTE figures exclude learners (working students, apprentices, interns) and temporary staff.
• Turnover calculations exclude learners and temporary staff.
• Regional classification: 78% of employees were based outside of Germany in 2024 (2023: 80%).
• Within Germany, employees represent over 100 different nations (2023: almost 100 nations).

Characteristics of non-employees in the undertaking's own workforce

ESRS S1-7 is marked as not applied in HUGO BOSS's disclosure.

The company provides limited data on non-employee workers in the Additional ESG data points section:

Methodology note: The Lost Time Injury Frequency Rate (LTIFR) measures the number of work-related injuries that prevent third-party contractors from returning to work on their next scheduled workday or shift. It is calculated as the number of these injuries per one million hours worked.

No information is provided regarding:

• Total number or headcount of non-employee workers
• Breakdown by type (contractor, agency worker, self-employed)
• Counting methodology (headcount vs FTE)
• Characteristics such as gender, age, or geographical distribution of non-employees

Collective bargaining coverage and social dialogue

Freedom of association and collective bargaining

HUGO BOSS is firmly committed to respecting and upholding employees' rights to unionize and participate in collective bargaining. Our Human Rights Commitment and Policy underline our commitment towards an open and constructive dialog with employees and their representatives. Our objective is to ensure these rights are consistently respected across all operations, in compliance with national laws, and to prevent any violations.

In Germany, all employees are covered by collective bargaining agreements and are represented by workers' representatives.

Social dialogue mechanisms

HUGO BOSS actively engages with its workforce through a variety of channels, including labor unions, works councils, and employee committees across its global operations, fostering open dialog and promoting labor rights.

Germany: Social dialog is facilitated by a close collaboration between the elected works council of HUGO BOSS AG, which represents employee interests, and the Managing Board. As a result of this collaboration, we have implemented a variety of works agreements, offering broad-ranging benefits for our employees. These cover health protection, flexible working arrangements, childcare support, family assistance programs, and anniversary bonuses, among other things.

Turkey: The elected employee representation aims to ensure that workers can raise concerns and participate in discussions about their working conditions.

Mexico and China: Specialized worker-manager committees focus on health, safety, and workplace conditions, ensuring employees' voices are heard at the local level.

France: The Social and Economic Committee (Comité social et économique, CSE) holds regular meetings with local management, representing different employee categories.

Workers' representatives

Workers' representatives are integral to our employee engagement process. Through works councils that are organized at both local and national levels, regular dialog takes place on key matters such as employee well-being, health and safety, and workplace development. Our workforce in Germany is represented by the works council at the level of our Group's parent company HUGO BOSS AG, in accordance with the German Works Constitution Act (Betriebsverfassungsgesetz, BetrVG). The annual works meeting where both the Managing Board and the Works Council provide employees in Germany with updates on the Company's economic performance and strategic priorities, and strengthens transparency and the connection between leadership and the workforce. The works council, led by its Chairperson, regularly engages in open dialog with the Managing Board and our central HR division, addressing both strategic and individual matters.

HUGO BOSS maintains regular meetings with union representatives, both directly and through associations such as the Southwest German Textile and Clothing Industry.

Supervisory Board composition

The Supervisory Board includes employee representatives in accordance with German co-determination law, including the Chairman of the Works Council HUGO BOSS AG (Sinan Piskin, Deputy Chairman of the Supervisory Board) and other employee representatives including trade union representatives from IG Metall.

Diversity metrics

Gender split at top management

HUGO BOSS has set ambitious targets for 2025, aiming for at least 40% women in the first management level (below the Managing Board) and at least 50% in the second management level.

Women in management positions:

Age band distribution

HUGO BOSS workforce spans multiple generations. As of fiscal year 2024, employees under 30 accounted for 6,581 (31%), those aged 30–50 made up 12,205 (57%), and employees over 50 totaled 2,500 (12%).

Employees by age group (headcount and share):

Adequate wages

Policy and Benchmark

HUGO BOSS states that "Fair pay is fundamental to ensuring financial security, fostering equity. Employees must earn at least the statutory minimum wage, and in cases where local standards are insufficient, a living wage standard is applied." (Human Rights Policy)

The company references ESRS adequate wage benchmark explicitly: "In fiscal year 2024, all employees earned at least in line with the adequate wage benchmark set forth in the ESRS, reaffirming our commitment to fair and adequate compensation."

Coverage

100% of own workforce met the ESRS adequate wage benchmark in fiscal year 2024.

Geographic Scope

Global coverage across all HUGO BOSS operations. The company states "employees worldwide are rewarded at least in line with local minimum wage standards" and applies living wage standards "in cases where local standards are insufficient."

Methodology

• All positions worldwide are evaluated via standardized criteria
• Majority of employees are remunerated based on job-specific salary bands
• Salary bands are based on external salary benchmarks covering several sectors (in addition to minimum local wage requirements)
• Company conducted a thorough evaluation of nearly all positions worldwide to establish a unified compensation system based on a Group-wide grading system
• Regular reviews of pay practices to maintain competitiveness

Targets and Commitments

Own workforce target (achieved): "In fiscal year 2024, all employees earned at least in line with the adequate wage benchmark set forth in the ESRS" (100% coverage maintained)

Value chain commitment: The company has a living wage strategy for suppliers:

• Developed in 2021 to ensure supplier wages "adequately cover workers' basic needs, including food, water, housing, education, healthcare, transportation, and clothing for all household members" plus savings capacity
• Living wage pilot program in Bangladesh launched with one supplier, extended until 2027
• In 2024, the company "increased the wage reference value in collaboration with the supplier in Bangladesh"
• The Supplier Code of Conduct requires "fair wages" and encourages suppliers "to adopt living wage strategies"

Additional Details

• Compensation system includes fixed and variable components, bonuses, non-cash compensation, and benefits
• Aligns with industry and collective bargaining agreements
• Regular gender pay gap analyses conducted
• Human Rights Policy (updated early 2025) sets binding standards requiring living wage when local standards are insufficient

Social protection

Coverage

All employees are entitled to various additional support, including health insurance, maternity and parental leave, and financial support for external training.

Pension commitments

Members of the Managing Board receive defined contribution pension commitments, with HUGO BOSS paying an annual pension contribution of 40% of the individual basic compensation into an employer's pensions liability insurance policy.

An entitlement to retirement benefits arises on or after reaching a fixed age of 65 or in the event that the Managing Board member becomes permanently unable to work due to illness or accident before reaching the age limit. In the event of death, their spouse or registered partner and their orphans are entitled to a survivor's pension.

Additionally, HUGO BOSS offers members of the Managing Board and senior management the option of acquiring additional pension benefits under deferred compensation agreements. This supplementary pension plan can take the form of retirement benefits, occupational incapacity benefits, and/or surviving dependents' benefits and/or a lump-sum death grant.

Country-specific provisions

Germany: Each employee who joined the Company prior to July 1, 2012, is entitled to benefits from Company pension plans. Employees who first receive benefits under the plan upon reaching the age of 50 or who have temporary employment agreements are excluded. Benefits comprise a post-employment benefit in the form of an old-age pension, an early-retirement benefit, a disability benefit, or a surviving dependents' benefit.

Switzerland: Employee pension plans are allocated to a pension fund separate from the employer. HUGO BOSS uses a collective foundation to provide for its employees against the economic consequences of old age, disability, and death. The plans are financed by employer and employee contributions. The benefit payments encompass old-age pensions, disability benefits, and surviving dependents' benefits.

Other countries: Additional defined benefit plans are in place in Austria, France, Italy, Mexico, and Turkey.

Pension obligations

Managing Board pension commitments (service cost)

Persons with disabilities

ESRS S1-12 is listed as not applied in the disclosure framework.

No quantitative metrics on the percentage of employees with disabilities are disclosed.

The company identifies employment and inclusion of persons with disabilities as a material impact area, noting that "a lack of accessibility infrastructure at workplaces hinders employees with disabilities, limiting their ability to perform tasks independently and impeding the creation of an inclusive work environment."

However, no actual data on disability representation, methodology for tracking disability status, or country-specific exclusions are provided in the sustainability statement.

Health and safety metrics

Work-related injury frequency rates

Methodology

The Lost Time Injury Frequency Rate (LTIFR) measures the number of work-related injuries that prevent employees or third-party contractors from returning to work on their next scheduled workday or shift. It is calculated as the number of these injuries per one million hours worked.

These data points are disclosed as "Additional ESG data points below materiality thresholds" in HUGO BOSS's reporting, indicating they fall below the company's double materiality assessment thresholds for ESRS S1-14.

Compensation metrics (ESRS S1-16)

Pay gap

Not disclosed.

Remuneration ratio

Not disclosed.

Phase-in statement

HUGO BOSS has applied ESRS S1-16 as "not applied" in its materiality assessment. According to the ESRS index table on page 314, the company has phased in this disclosure requirement and has not reported gender pay gap or CEO remuneration ratio data for fiscal year 2024.

Incidents, complaints and severe human rights impacts

Own Workforce

During the reporting period, a total of 12 incidents of discrimination, including harassment, were reported (2023: 17 incidents, with one incident reported in 2024).

No complaints were filed with National Contact Points (NCPs) for OECD Multinational Enterprises through the available confidential internal channels (2023: no complaints).

In fiscal year 2024, as in the prior year, HUGO BOSS was not aware of any human rights incidents or severe human rights violations within its own workforce, including:

• Cases of child labor
• Cases of forced labor
• Cases of human trafficking
• Non-respect of the UN Guiding Principles and OECD Guidelines

No material fines, penalties, or compensation payments related to human rights issues were recorded in 2024.

Workers in the Value Chain

In 2024, several supply-chain-related complaints were submitted via whistleblowing channels.

Supply Chain Complaint Cases in 2024:

Grievance Mechanisms

HUGO BOSS provides three independent whistleblowing channels:

• Speak Up Channel
• External Ombudsperson service
• Compliance department

These channels enable reporting confidentially, anonymously, and free of charge. Additional internal whistleblowing channels exist at local level.

The Compliance department reviews the effectiveness of the grievance procedure at least once a year or on an ad-hoc basis.

Policies related to value chain workers

HUGO BOSS has established several policies to address social and human rights issues affecting workers in its value chain:

HUGO BOSS Supplier Code of Conduct (SCoC)

• Scope: All suppliers and their partners and networks (unless they have equivalent standards). Applies to Tier 1 suppliers and extends through their supply chains.

• Key content and principles:

  • Minimum standards for working hours and rest periods, with a cap on working hours where national laws are absent
  • Prohibition of child labor and forced labor
  • Requirements for decent working conditions
  • Fair wages
  • Support for freedom of association and collective bargaining
  • Requirements for continuous improvement across human rights, labor standards, and environmental protection
  • Zero-tolerance policy towards corruption and unethical behavior
  • Environmental protection requirements including identification and monitoring of energy sources, tracking of greenhouse gas emissions, development of roadmaps to reduce energy consumption and emissions, responsible management of natural resources, waste and pollution avoidance, efficient use of energy and water

• Contractual status: Compliance with the SCoC is mandatory for all suppliers and is a contractual prerequisite for collaboration with HUGO BOSS

• Public availability: Available in multiple languages. A simplified one-page version is available in 30 languages and displayed at partners' production facilities with direct access to complaint mechanisms via QR code

• Link to international standards: Based on the UN's Universal Declaration of Human Rights (UDHR), the International Labour Organization (ILO) Core Conventions, and the OECD Guidelines for Multinational Enterprises

• Governance: Reviewed annually with input from stakeholders such as NGOs. Latest update made in 2024

• Monitoring and implementation:

  • Compliance monitored through annual self-assessments and regular social audits
  • Training on ESG topics provided to suppliers
  • ESG onboarding training conducted for new suppliers and selected existing partners in 2024
  • Employees whose roles involve social compliance receive regular training on the SCoC
  • In fiscal year 2024, 56 audits were conducted (with 13% unannounced)
  • Corrective Action Plans (CAPs) developed for suppliers with human-rights-related risks
  • 52 CAPs issued in 2024, with implementation verified through follow-up audits
  • FLA (Fair Labor Association) independently monitors due diligence efforts through annual audits at selected production sites
  • Risk-based audit cycle for monitoring
  • Responsible exit process for suppliers that fail to achieve adequate improvements

Human Rights Statement

• Approval: Signed by the Managing Board

• Scope: HUGO BOSS own operations and supply chain

• Key content: Outlines the Company's responsibility to care for human rights within both own operations and supply chain, highlights awareness of potential risks, and defines human rights responsibilities

• Public availability: Available in several languages

• Link to international standards: Reinforces commitment to respecting international standards (references UN's Universal Declaration of Human Rights, ILO Core Conventions, and OECD Guidelines for Multinational Enterprises as foundation)

• Governance: Reviewed annually. Most recent update in 2024. Human Rights Officer monitors human rights risks and reports at least twice per year to the Managing Board and the Audit Committee of the Supervisory Board on identified risks and the due diligence process. Human Rights Officer is responsible for overseeing implementation, monitoring, and annual updating of policies

Child Labor and Forced Labor Policy

• Scope: Global value chain

• Key content and principles:

  • Zero-tolerance stance towards child labor, young labor, forced labor, and human trafficking
  • Strict prohibitions on child labor, forced labor and human trafficking in all forms
  • Prohibition on exploitation of vulnerable groups
  • Clear guidelines regarding employment of young workers to safeguard their rights
  • Preventive measures including age verification during hiring, regular audits, and targeted training for employees and partners
  • Immediate action in cases of violations to address issues and support affected individuals
  • Confidential reporting channels to reinforce compliance

• Link to international standards: Aligned with international standards, including the ILO Core Conventions

• Governance: Reviewed and updated regularly. Latest revision finalized in early 2025

Anti-Discrimination, Anti-Harassment, and Gender Equality Commitment and Anti-Discrimination, Anti-Harassment, and Gender Equality Policy

• Scope: HUGO BOSS organization and workers in the value chain (guided by obligations set forth in the Supplier Code of Conduct)

• Key content: Fostering an inclusive, respectful, and ethical work environment with strong emphasis on human rights. Particular relevance to addressing challenges faced by vulnerable groups, including women, who are disproportionately affected by discrimination, harassment, and unequal pay

• Link to international standards: Aligning with international standards, including ILO and UN conventions

Responsible Purchasing Guidelines

• Development: Developed in 2024, set to be communicated internally in 2025

• Key content: Emphasize trust-based and equitable partnerships, long-term collaborations

Logistics Guideline

• Scope: Integral part of Environmental Policy. Applies to global transportation processes at own sites and at those of partners along the supply chain

• Key content: Provides strategic framework for planning and executing global transportation processes. Emphasizes low-emission transport options, aims to reduce carbon emissions throughout logistics network, promotes optimizing delivery routes and consolidating shipments to minimize environmental impact

Taking action on material impacts on value chain workers

Decarbonization Commitment

Action description: Contractual obligation for Tier 1 suppliers introduced at the beginning of 2025.

Scope: Upstream value chain (Tier 1 suppliers)

Time horizon: Beginning of 2025 (implementation date)

Key requirements:

• Phase out coal
• Report mandatory data through the Higg FEM
• Transition to renewable energy alternatives

Purpose: Ensure supply chain activities align with sustainability goals, including the transition to renewable energy sources.

Resources allocated: Not quantified

Cascale Membership and Higg FEM Implementation

Action description: HUGO BOSS joined Cascale in 2024, a collaborative platform to strengthen industry partnerships, enhance supplier engagement, and improve data management insights. Implemented the Higg Facility Environmental Module (Higg FEM) 4.0 on the Worldly platform.

Scope: Upstream value chain (suppliers)

Time horizon: 2024 (implementation)

Purpose:

• Accurately capture and manage Scope 3 emissions
• Sustainability measurement in apparel and footwear industry

Non-financial resources:

• Training sessions conducted for key teams, including product divisions
• Training focus: Higg FEM functionality, benchmarking opportunities for optimized order placements, country-specific analyses

Resources allocated: Not quantified

Transport GHG Emissions Reduction

Action description: Progressive reduction of transport-related greenhouse gas emissions (Scope 3.4 upstream transportation and distribution).

Scope: Upstream value chain (transportation and distribution)

Key activities:

• Consistently reducing air freight
• Improving transport planning
• Exploring alternatives such as biofuels with global logistics partners

Resources allocated: Not quantified

Policies related to affected communities

HUGO BOSS has assessed ESRS S3-1 (Policies related to affected communities) as not material.

According to the disclosure application table, the following disclosure requirements related to affected communities are not material:

• ESRS S3 SBM-2: not material
• ESRS S3 SBM-3: not material
• ESRS S3-1: not material
• ESRS S3-2: not material
• ESRS S3-3: not material
• ESRS S3-4: not material
• ESRS S3-5: not material

In the additional ESG data points table, the company confirms that the following specific data points are not material:

• ESRS S3-1 16: Human rights policy commitments - not material
• ESRS S3-1 17: Non-respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines - not material
• ESRS S3-4 36: Human rights issues and incidents - not material

As a result of the materiality assessment, HUGO BOSS has determined that impacts, risks, and opportunities related to affected communities do not meet the materiality threshold for disclosure under ESRS S3-1. Therefore, no specific policies related to affected communities are disclosed.

Business conduct policies and corporate culture

HUGO BOSS has implemented a comprehensive framework of policies addressing business conduct, corporate culture, anti-corruption, whistleblowing, and animal welfare. These policies are designed to ensure ethical behavior, legal compliance, and responsible business practices across the organization and its value chain.

HUGO BOSS Code of Conduct

Policy name: Code of Conduct

Scope: All employees across all Group companies. Employees receive a copy of the Code or online access via a QR code along with their employment contract.

Governance and oversight: The Managing Board is responsible for oversight of compliance with the Code.

Key content and principles: The Code establishes Group-wide legal and ethical principles for employee conduct, covering:

• Fair competition
• Avoidance of conflicts of interest
• Proper handling of Company information and data protection
• Fair working conditions and respectful treatment in the workplace
• Zero tolerance toward corruption
• Respect for internationally recognized human rights
• Decent, safe, and fair working conditions
• Occupational health and safety
• Environmental and biodiversity protection
• Animal welfare
• Antitrust law and anti-corruption

Public availability: Publicly accessible on the corporate website, available in more than 14 languages. Most recent revision in 2022.

Monitoring: HUGO BOSS does not tolerate any willful misconduct or violations of the Code. Compliance is monitored through various mechanisms including mandatory compliance training courses, which all permanent employees must complete at least every 18 months.

HUGO BOSS Supplier Code of Conduct (SCoC)

Policy name: Supplier Code of Conduct (SCoC)

Scope: All suppliers and their networks. Compliance with the SCoC is mandatory for all suppliers and their partners unless they have equivalent standards. The code is a contractual prerequisite for collaboration.

Key content and principles: The SCoC sets minimum standards for all partners, including:

• Working hours and rest periods (with a cap on working hours where national laws are absent)
• Prohibition of child and forced labor
• Decent working conditions and fair wages
• Right to freedom of association and collective bargaining
• Environmental protection requirements, including identification and monitoring of energy sources and tracking of greenhouse gas emissions
• Requirements to develop roadmaps to reduce energy consumption and emissions
• Responsible management of natural resources
• Measures to avoid waste and pollution
• Efficient use of energy and water
• Zero-tolerance policy towards corruption and unethical behavior

Public availability: Available in multiple languages with a simplified one-page version in 30 languages displayed at partners' production facilities, providing direct access to complaint mechanisms via QR code.

International standards alignment: Based on internationally recognized standards, including:

• UN's Universal Declaration of Human Rights (UDHR)
• International Labour Organization (ILO) Core Conventions
• OECD Guidelines for Multinational Enterprises

Monitoring: Compliance is monitored through:

• Annual self-assessments
• Regular social audits (56 audits conducted in 2024, with 13% being unannounced)
• Training on ESG topics
• Corrective Action Plans (CAPs) for suppliers with human-rights-related risks
• The SCoC is reviewed annually, with input from stakeholders such as NGOs, with the latest update made in 2024

Human Rights Statement

Policy name: Human Rights Statement

Scope: Own operations and supply chain.

Governance and oversight: Signed by the Managing Board. The Human Rights Officer monitors human rights risks and reports at least twice per year to the Managing Board and the Audit Committee of the Supervisory Board.

Key content and principles: Outlines the Company's responsibility to care for human rights within both own operations and supply chain, highlighting awareness of potential risks and defining human rights responsibilities.

Public availability: Available in several languages. Reviewed annually, with the most recent update in 2024.

International standards alignment: Based on internationally recognized standards including the UN's Universal Declaration of Human Rights (UDHR), ILO Core Conventions, and OECD Guidelines for Multinational Enterprises.

Child Labor and Forced Labor Policy

Policy name: Child Labor and Forced Labor Policy

Scope: Global value chain.

Key content and principles: Underscores zero-tolerance stance towards:

• Child labor
• Young labor
• Forced labor
• Human trafficking across the global value chain
• Exploitation of vulnerable groups

Sets clear guidelines regarding the employment of young workers to safeguard their rights. Requires preventive measures such as:

• Age verification during hiring
• Regular audits
• Targeted training for employees and partners

In cases of violations, immediate action is taken to address the issue and support affected individuals, with confidential reporting channels reinforcing compliance.

International standards alignment: Aligned with ILO Core Conventions.

Monitoring: The policy is reviewed and updated regularly, with the latest revision finalized in early 2025.

Anti-Discrimination, Anti-Harassment, and Gender Equality Commitment and Policy

Policy name: Anti-Discrimination, Anti-Harassment, and Gender Equality Commitment and Anti-Discrimination, Anti-Harassment, and Gender Equality Policy

Scope: Own workforce and workers in the value chain (guided by the obligations set forth in the SCoC).

Key content and principles:

• Emphasis on creating a discrimination- and harassment-free working environment
• Promotes respect for the full spectrum of diversity, including race, gender, sexual orientation, age, and more
• Zero-tolerance stance on any form of discrimination or harassment
• Addresses challenges faced by vulnerable groups, including women, who are disproportionately affected by discrimination, harassment, and unequal pay

International standards alignment: Aligns with international standards, including ILO and UN conventions.

Note: A dedicated policy on DE&I is currently being developed, with publication expected in 2025.

Fair Pay Commitment

Policy name: HUGO BOSS Fair Pay Commitment

Scope: All employees.

Key content and principles:

• All employees are to be compensated fairly and equitably, in accordance with local laws and international labor standards
• Commitment to ensuring equal pay for work of equal value
• Regular reviews to ensure pay practices are transparent and free from bias

Whistleblowing Policy

Policy name: HUGO BOSS Whistleblowing Policy

Scope: All HUGO BOSS employees and extends protection to external stakeholders, such as business partners, workers in the value chain, and customers.

Key content and principles: Establishes a structured process for reporting, investigating, and addressing:

• Legal violations
• Unethical behavior
• Breaches of the Code of Conduct
• Human rights violations
• Corruption and bribery
• Fraud and theft

Guarantees the highest level of confidentiality and protection for whistleblowers, affected individuals, and employees involved in the investigation of potential misconduct.

Public availability: Detailed information about whistleblowing channels is available on the corporate website and intranet.

Grievance mechanisms: Three independent whistleblowing channels:

1. HUGO BOSS Speak Up Channel (launched in 2024, accessible globally in over 50 languages via a toll-free hotline)
2. External Ombudsperson service
3. Central Compliance department

All channels enable reporting confidentially, anonymously, and free of charge. Additional local-level internal whistleblowing channels are also available.

Monitoring: The Compliance department maintains comprehensive documentation of all investigations and evaluates the effectiveness of whistleblowing channels annually or as needed. The policy is reviewed annually, with the most recent update in 2024. Feedback from internal and external stakeholders is incorporated.

Animal Welfare Policy

Policy name: HUGO BOSS Animal Welfare Policy

Scope: All Group companies. The policy applies to operations and supply chain involving animal-derived materials.

Governance and oversight: Responsibility for the policy resides with the Managing Board, while the Compliance department ensures its implementation and adherence.

Key content and principles:

• Incorporates "General Animal Welfare Aims" based on the Five Domains Model, defining minimum requirements and measures addressing both physical and mental well-being of animals
• Firm opposition to animal testing for all products, including licensed goods like cosmetics, extending to new product and material development
• Leather sourced exclusively as a by-product of the food industry
• Exotic leathers and farmed fur banned since 2016
• Prohibition on use of angora
• Emphasis on species-appropriate husbandry and gentle shearing methods for wool
• Avoidance of harmful practices such as live lamb cutting
• Commitment to sourcing 100% mulesing-free wool by 2030 (53% achieved in 2024)
• Exclusive use of mohair certified under the Responsible Mohair Standard (RMS)
• Down produced without live plucking or forced feeding, certified by DOWNPASS or recycled
• Active development and integration of vegan alternatives where they enhance environmental balance without compromising quality or functionality

Public availability: Last updated in 2024.

International standards alignment: Aligns with:

• Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)
• World Organization for Animal Health (WOAH) guidelines
• Developed in collaboration with the animal welfare organization FOUR PAWS

Deviations: Deviations allowed only in cases where country-specific regulations conflict with the policy, provided the essential content and purpose are upheld. Non-compliance may result in labor law consequences.

Anti-Corruption Policy

Policy name: Anti-Corruption Policy (regulating the acceptance and granting of gifts and invitations)

Scope: All employees.

Key content and principles: Group-wide compliance rules on anti-corruption. In fiscal year 2024, efforts focused on enhancing the anti-corruption policy by:

• Streamlining approval processes
• Addressing additional risk areas
• Establishing clear procedures for handling suspicious cases

Public availability: The rollout of the revised policy is planned for the beginning of fiscal year 2025.

Monitoring: The central Compliance department reports to the Chief Compliance Officer, who reports directly to the CFO/COO. The Compliance department ensures implementation and continuous further development of the policy as part of the compliance program. The Audit Committee of the Supervisory Board is regularly informed about the activities of the Compliance department.

Logistics Guideline

Policy name: Logistics Guideline

Scope: Global transportation processes at own sites and at those of partners along the supply chain.

Key content and principles: Forms an integral part of the Environmental Policy, providing a strategic framework for planning and executing global transportation processes. It:

• Emphasizes low-emission transport options
• Aims to reduce carbon emissions throughout the logistics network
• Promotes optimizing delivery routes and consolidating shipments to minimize environmental impact

Corporate Culture Framework

Framework name: Value-based corporate culture (company culture)

Scope: All employees, business partners, shareholders, the public, and other stakeholders.

Key content and principles: Built around five core values:

1. Entrepreneurial spirit
2. Personal ownership
3. Team mentality
4. Simplicity & quality
5. Youthful spirit

Trust serves as the foundation overarching these values. The values guide employee actions and interactions, drive cooperation, and align individual growth with organizational goals.

Governance oversight: Embedded in the execution of the "CLAIM 5" strategy.

Monitoring:

• A mandatory e-learning module, retaken every 18 months, educates employees on ethical conduct and reinforces core values
• Workshops and town hall meetings provide platforms to embed principles into everyday actions
• Annual employee survey to assess whether core values are actively lived and to identify key drivers of work ethic
• Results shared with the Managing Board, senior management, and wider organization
• Survey results, particularly the "Trust Index," represent a key component of the long-term incentive program (LTI) for the Managing Board and eligible senior management staff

Leadership framework: Leadership Mindset framework built on four pillars: orientate, challenge, harbor, and connect. Leadership Development Program (LDP) strengthens this connection.

Compliance Management System (CMS)

System name: Compliance Management System (CMS)

Scope: All employees across business units and in dealings with external stakeholders.

Key content and principles: Based on the IDW PS 980 standard, covering relevant risk areas:

• Anti-corruption
• Antitrust law
• Data protection
• Money laundering prevention
• Sanction prevention
• Safeguarding of human rights

Includes comprehensive internal compliance regulations with corresponding controls.

Training: Mandatory Group-wide Online Compliance Training course for employees requiring regular completion (at least every 18 months). The training covers:

• Company Values
• Code of Conduct
• Anti-Corruption
• Anti-Money Laundering
• Data Protection
• Information Security
• Antitrust
• Conflict of Interests
• Animal Welfare
• Whistleblowing

Program was last updated, expanded, and rolled out in 2024. Employees in compliance-critical roles receive additional training through both online and in-person sessions.

Monitoring:

• Compliance risk management and compliance reviews are components of the CMS
• The Compliance department uses various measures to ensure the CMS and corresponding processes are executed, adhered to, and continuously developed
• All Group companies are subject to detailed audits where applicable
• The Managing Board and Supervisory Board are regularly informed about key compliance issues
• Results of the CMS are incorporated into the Company-wide RMS

Responsible Purchasing Guidelines

Policy name: Responsible Purchasing Guidelines

Scope: Internal (developed in 2024, set to be communicated internally in 2025).

Key content and principles: Emphasize:

• Trust-based and equitable partnerships
• Long-term collaborations

Designed to promote fair working conditions and wages across the supply chain.

Incidents of corruption or bribery

Confirmed incidents and convictions

In 2024, HUGO BOSS concluded a legal case in Denmark by agreeing to pay a fine related to an antitrust violation initially identified in 2020. Apart from this, no violations related to corruption, bribery, or antitrust law were identified by authorities or courts in fiscal year 2024 (2023: no violations).

Fines paid

The company paid a fine in Denmark related to the antitrust violation case. The specific amount of the fine was not disclosed in the reporting.

Disciplinary actions and contract terminations

The report does not disclose the number of employees dismissed or disciplined due to corruption or bribery, nor the number of contracts with business partners terminated or not renewed due to such violations.

Investigation and speak-up mechanisms

HUGO BOSS has established comprehensive whistleblowing channels:

• Speak Up Channel: A global, toll-free hotline accessible in over 50 languages, launched in 2024
• External Ombudsperson service: Available for confidential and anonymous reporting
• Compliance department: Direct reporting channel

These channels are available to employees, suppliers, trading partners, and external stakeholders. Reports can be made confidentially and anonymously. The company has implemented a Whistleblowing Policy that outlines the process for reporting, investigating, and addressing legal violations, unethical behavior, or breaches of the Code of Conduct, including corruption and bribery.

The Compliance department maintains comprehensive documentation of all investigations and evaluates the effectiveness of whistleblowing channels annually. Compliance risk management uses various measures including:

• Mandatory Group-wide Compliance Online Training for all employees (completed at least every 18 months)
• Enhanced anti-corruption policy with streamlined approval processes (rollout planned for early 2025)
• Regular audits of all Group companies
• Additional training for employees in compliance-critical roles

All reported cases are thoroughly investigated, with strict measures to protect whistleblowers from retaliation. Significant infringements are reported to the Managing Board and Supervisory Board. The Audit Committee of the Supervisory Board is regularly informed about Compliance department activities.